At the beginning of the year, we would like to provide you with a comprehensive and detailed overview of the HR and payroll obligations affecting 2026, with particular focus on working schedules as well as declaration requirements related to tax allowances.

The detailed list of public holidays, rest days and rescheduled working days for 2026 is available in a separate notice, which can be found here. The purpose of the summary below is to support annual planning, the review of internal policies and compliance with applicable regulations.

1. Tax Allowances and Declarations – Detailed Overview (2026)

Reiterating our previously sent communication: under Hungarian legislation, employees are required to submit annual declarations in order to apply the following tax allowances and benefits.

1.1 Tax Allowances and Benefits Requiring Annual Declaration

Annual declaration is required in the following cases:

• Family tax allowance
• Tax allowance for employees under 25 years of age (only if the employee does not wish to apply it)
• Tax allowance for mothers under 30 years of age
• Additional leave entitlement for children
• NEW – “ANYÁCSKA” combined declaration
  (combined declaration for family tax allowance and allowance for mothers raising multiple children)

1.2 Allowances Applicable Based on Continuous Declaration

For the following allowances, a continuous declaration (valid until withdrawal) may be applied, provided the employee indicated this on a previous declaration:

• Tax allowance for first-time married couples
• Personal tax allowance
• Tax allowance for mothers raising multiple children

1.3 Important Deadline and Legal Consequences

• Deadline: Please submit declarations together with the monthly payroll closing package, but no later than 26 January 2026
  (if the allowance is to be applied already in the January payroll)
• Tax allowances cannot be applied retroactively through payroll.
• In case of late submission, the allowance can only be applied from the following month.
• Missed allowances may be reclaimed in the 2026 personal income tax return (submitted in 2027).

2. Client-Side Action Items – 2026

Please ensure the following tasks receive priority attention:

Policies

• Submission of updated internal HR policies for 2026, with particular focus on benefit and taxation policies.

Employee Communication

• Sharing tax allowance-related declarations with employees,
• Clear communication of deadlines and legal consequences.

HR and Payroll Systems

• Recording 2026 public holidays, rest days, and rescheduled working days in HR/timekeeping systems,
• Verifying that system settings are aligned with internal policies and payroll processes.

3. Changes to Fringe Benefits Effective from 1 January 2026

The amounts of benefit elements (SZÉP Card, Housing Allowance) remain unchanged.
However, between 1 December 2025 and 30 April 2026, the SZÉP Card may also be used for cold food purchases.

4. Changes to Personal Income Tax Allowances

Family Tax Allowance – Changes

Monthly tax base allowance amounts from 1 January 2026:

• 1 child: HUF 133,340
• 2 children (per child): HUF 266,660
• 3 or more children (per child): HUF 440,000
• Permanently ill child – additional amount: HUF 133,340

Citizens of EEA countries and non-EEA countries bordering Hungary (Serbia, Ukraine) employed in Hungary are entitled to apply the family tax allowance, the allowance for first-time married couples, and the tax allowance for employees under 25.

Allowances for Mothers

• Allowance for mothers under 30:
  From 1 January 2026, the personal income tax exemption applies not only up to the average wage, but to the full income earned from employment.
• Allowance for mothers raising three children:
  From 1 October 2025, the allowance applies to income forming part of the consolidated tax base.
  For in-year application, the employer will treat the submitted tax advance declaration as continuous until a new declaration is submitted by the mother.
• Allowance for mothers raising two children:
  From 1 January 2026, the allowance will follow the same rules as for mothers raising three or more children.
  The allowance is independent of age; however, its effective date depends on age as follows:
  • From 1 January 2026 – mothers under 40
  • From 1 January 2027 – mothers aged 40–50
  • From 1 January 2028 – mothers aged 50–60
  • From 1 January 2029 – mothers over 60

5. Social Contribution Tax (SZOCHO)

For retired employees, a SZOCHO liability arises if the annual income forming the basis of the mothers’ allowance exceeds four times the published national gross annual average wage, i.e. HUF 33,297,600 in 2026.

6. Other Changes

• The monthly healthcare service contribution (payable by uninsured individuals) increases from HUF 11,800 to HUF 12,300.
• The minimum wage increases from HUF 290,800 to HUF 322,800(hourly rate: HUF 1,856), and the guaranteed minimum wage increases from HUF 348,800 to HUF 373,200 (hourly rate: HUF 2,145).
• From 1 January 2026, employees working part-time whose gross salary does not reach 30% of the minimum wage (i.e. HUF 96,840) will be required to pay the 18.5% social security contribution based on 30% of the minimum wage in order to maintain insurance coverage. The employer will also be required to pay SZOCHO on this amount.
• The rehabilitation contribution will equal nine times the monthly minimum wage applicable on the first day of the year, i.e. HUF 2,905,200 per employee per year.

7. Rules Remaining in Force

• Annual overtime limit remains 250 hours.
• An additional maximum of 150 hours of voluntary overtime may be agreed upon in writing.
  Separate records must be maintained for this.
• Annual leave allocation:
  Leave must be taken in the current year. At least once per year, 14 consecutive calendar days must be granted.
  A maximum of 5 days may be carried over to the following year if the leave period extends into December.

Leave may be carried over until 31 March of the following year:

• if the employment relationship commenced after 1 October of the given year;
• based on a written agreement between the parties, for age-based additional leave.

Should you require support with policy updates, employee communication, or system configuration, our HR and payroll team remains at your disposal.